Vishnu777
Member
- Joined
- 3 Feb 2017
- Messages
- 2,016
- Reaction score
- 2,653
Idea Cellular, the country's third largest telecom operator by subscriber base, has posted a consolidated loss of Rs 385.6 crore against profit of Rs 90.04 crore in previous quarter, impacted by demonetisation and Reliance Jio's free offerings that have been extended till March 31, 2017.
On standalone basis, it reported a loss of Rs 478.9 crore in Q3FY17, for the first time in 40 quarters since its IPO in 2007, as last two years of high investments increased depreciation & amortisation charges to Rs 1,965.3 crore and finance cost to Rs 923.2 crore.
Consolidated revenue during the quarter fell 6.9 percent to Rs 8,662.7 crore compared with Rs 9,300.24 crore in previous quarter.
"The Indian mobile industry witnessed disruption in the quarter of October to December 2016, primarily due to free voice and mobile data promotions by the new entrant in sector. For the first time in history, the Indian wireless sector is trending towards an annual revenue decline of 3-5 percent in FY17 against FY16," the Aditya Birla Group company said in its filing.
Prakash Diwan of Altamount Capital Management feels Vodafone-Idea merger news is already priced in but these disappointing numbers are not enough to sustain that stock price level. The stock recovered 67 percent from 52-week low of Rs 66 hit in November, to Rs 110.35 (last Friday's closing value) on Vodafone merger talks.
Idea said in an effort to retain its existing mobile subscribers, it was forced to reduce on sequential quarterly basis its voice rates by 10.6 percent to 29.6 paisa per minute from 33.1 paisa in Q2FY17 and drop mobile data rates by 15.2 percent to 15.9 paisa per megabyte against 18.7 paisa in previous quarter.
Idea Cellular Q3 loss seen at Rs 445 cr, ARPU may fall 9% - Moneycontrol.com
On standalone basis, it reported a loss of Rs 478.9 crore in Q3FY17, for the first time in 40 quarters since its IPO in 2007, as last two years of high investments increased depreciation & amortisation charges to Rs 1,965.3 crore and finance cost to Rs 923.2 crore.
Consolidated revenue during the quarter fell 6.9 percent to Rs 8,662.7 crore compared with Rs 9,300.24 crore in previous quarter.
"The Indian mobile industry witnessed disruption in the quarter of October to December 2016, primarily due to free voice and mobile data promotions by the new entrant in sector. For the first time in history, the Indian wireless sector is trending towards an annual revenue decline of 3-5 percent in FY17 against FY16," the Aditya Birla Group company said in its filing.
Prakash Diwan of Altamount Capital Management feels Vodafone-Idea merger news is already priced in but these disappointing numbers are not enough to sustain that stock price level. The stock recovered 67 percent from 52-week low of Rs 66 hit in November, to Rs 110.35 (last Friday's closing value) on Vodafone merger talks.
Idea said in an effort to retain its existing mobile subscribers, it was forced to reduce on sequential quarterly basis its voice rates by 10.6 percent to 29.6 paisa per minute from 33.1 paisa in Q2FY17 and drop mobile data rates by 15.2 percent to 15.9 paisa per megabyte against 18.7 paisa in previous quarter.
Idea Cellular Q3 loss seen at Rs 445 cr, ARPU may fall 9% - Moneycontrol.com
